What You Should Know About Home InsuranceMap Man, · Categories: homes · Tags: choosing home insurance, home insurance, home insurance cover, house insurance
Your place of residence, or as it’s better known, your home, is probably the most important and largest investment you own. While the plans on offer may vary from one insurance provider to the next, the standard homeowner policy typically has 4 main components.
Coverage For The Structure
This happens to be the more important factor on any policy. It offers coverage for damage to the property due to storms, fires and other types of disasters. It is a wise decision to insure your home for 100% of the costs involved to rebuild. If the destruction to the property is recognized as complete for example your house was completely destroyed in a fire, you will have enough funds to rebuild the home. In order to decide on this amount you may want to hire a builder in your area to provide you with an accurate estimate.
Coverage For Contents
Most of the plans will cover costs related to replacement of personal belongings when they are lost in the event of a fire, stolen or other insured disasters. The coverage limit average is about 50% of what the value is of the structure of the home. For example if you have stated the costs to replace the home if $200,000, then you would be allowed to have around $100,000 insurance coverage for personal belongings. To ensure this amount is adequate it is highly advisable to make up detailed lists pertaining to the contents in the home that should be inclusive of appliances, tools, clothing, furniture and any other items of value.
Standard policies typically cover in 3 ways. It will cover the damages sustained to another person’s property. For example your child has thrown a ball through the neighbour’s window. It also covers your personal liability. This means that when another person is suing you or a court finds you legally responsible in regards to property damage or a person’s personal injury, your policy will pay out for costs associated with defending you as well as court awards to the limits set in your policy.
Most of the homeowner policies will offer a minimum of around £1 million for liability protection. However many experts suggest that you should purchase a minimum of £3 million for protection or even more, dependent on your actual assets.
Reimbursement For Other Living Expenses
In the event of a fire or other types of insured calamities that have destroyed your house which means you are forced to vacate the property, the policy covers these expenses. Typically, the coverage will include rental car, restaurant meals and hotel bills. Most of the policies will offer coverage that is equivalent to around 20% of coverage relating to your home.
Over and above your standard coverage, you may want to invest in additional riders. For example, if your home features expensive jewellery or artwork, you should consider another policy in order to cover these items. For example the standard coverage on jewellery is only about £1,000 to £2,000 on the basic policies.